Mission Marketing Group(The) EBITDA jumped on 14.3% in 2015 and EBITDA Margin increased slightly on 0.54 pp from 6.3% to 6.9%
22 Mar 2016 • About Mission Marketing Group(The) (
$TMMG) • By InTwits
Mission Marketing Group(The) reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- EBITDA Margin is relatively stable: 6.9% in 2015 vs. 6.3% in 2014 vs. 5.7% in 2011
- Mission Marketing Group(The) has low CAPEX intensity: 5 year average CAPEX/Revenue was 1.2%. At the same time it's a lot of higher than industry average of 3.2%.
- CAPEX is quite volatile: 4.1 in FY2015, 4.0 in FY2014, 2.4 in FY2013, 1.3 in FY2012, 0.52 in FY2011
- The company has business model with low profitability: ROIC is at 8.3%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Mission Marketing Group(The) ($TMMG) key annual financial indicators
| mln. £ | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 116.0 | 117.0 | 124.1 | 125.5 | 132.2 | 5.3% |
| Gross Profit | 41.5 | 47.5 | 51.6 | 55.0 | 61.0 | 11.0% |
| EBITDA | 6.6 | 6.9 | 6.4 | 8.0 | 9.1 | 14.3% |
| Net Income | 3.1 | 3.4 | 2.4 | 4.2 | 4.0 | -4.4% |
Balance Sheet
|
|---|
| Cash | 0.3 | 0.5 | 0.6 | 1.5 | 1.8 | 15.2% |
| Short Term Debt | 4.0 | 2.4 | 1.8 | 11.0 | 1.6 | -85.6% |
| Long Term Debt | 11.7 | 10.7 | 9.6 | 0.0 | 11.5 | 104,518.2% |
Cash flow
|
|---|
| Capex | 1.6 | 1.2 | 1.2 | 2.2 | 1.3 | -40.8% |
Ratios
|
|---|
| Revenue growth | 28.4% | 0.8% | 6.1% | 1.2% | 5.3% | |
| EBITDA growth | 15.3% | 4.2% | -7.3% | 24.5% | 14.3% | |
| Gross Margin | 35.7% | 40.6% | 41.6% | 43.8% | 46.2% | 2.4% |
| EBITDA Margin | 5.7% | 5.9% | 5.2% | 6.3% | 6.9% | 0.5% |
| Net Income Margin | 2.7% | 2.9% | 1.9% | 3.3% | 3.0% | -0.3% |
| CAPEX, % of revenue | 1.3% | 1.1% | 1.0% | 1.7% | 1.0% | -0.8% |
| ROIC | 8.1% | 7.8% | 6.4% | 7.8% | 8.3% | 0.5% |
| ROE | 5.5% | 5.6% | 3.7% | 6.2% | 5.6% | -0.6% |
| Net Debt/EBITDA | 2.3x | 1.8x | 1.7x | 1.2x | 1.2x | 0.1x |
Revenue and profitability
The company's Revenue increased on 5.3% in 2015. Revenue growth happened at the same time with EBITDA margin expansion. EBITDA Margin increased slightly on 0.54 pp from 6.3% to 6.9% in 2015.
Gross Margin increased on 2.4 pp from 43.8% to 46.2% in 2015.
Net Income marign showed almost no change in 2015.
Capital expenditures (CAPEX) and working capital investments
In 2015 Mission Marketing Group(The) had CAPEX/Revenue of 0.98%. Mission Marketing Group(The)'s CAPEX/Revenue showed almost no change from 2012 to 2015. It's average level of CAPEX/Revenue for the last three years was 1.2%.
Return on investment
The company operates at low ROIC (8.29%) and ROE (5.61%). ROIC showed almost no change in 2015. ROE decreased slightly on 0.61 pp from 6.2% to 5.6% in 2015.
Leverage (Debt)
Debt level is 1.2x Net Debt / EBITDA and 1.4x Debt / EBITDA. Net Debt / EBITDA increased on 0.1x from 1.2x to 1.2x in 2015. Debt jumped on 18.8% in 2015 while cash surged on 15.2% in 2015.
Valuation
The company's trades at EV/EBITDA 5.4x and P/E 9.3x while industy averages are 10.5x and 26.1x. The company's EV/(EBITDA-CAPEX) is 6.2x with the industry average at 4.7x.
Appendix 1: Peers in Media
Below we provide Mission Marketing Group(The) benchmarking against other companies in Media industry for the last 5 years. We show data for the top-5 companies by key financial metric together with the median value for all the companies in the industry.
Top companies by Revenue growth, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Jaywing ($JWNG) | | -16.6% | -27.9% | -0.7% | 26.6% |
| Marimedia Ltd ($MARI) | | 24.4% | 71.1% | 45.7% | 20.1% |
| Nahl Group ($NAH) | | 12.6% | -3.2% | -10.7% | 15.7% |
| Mbl Group ($MUBL) | | -24.6% | -24.9% | 4.0% | 10.4% |
| Naspers ($NPSN) | | 15.7% | 10.2% | 4.8% | 6.7% |
| |
|---|
| Median (17 companies) | -13.8% | -3.0% | -6.6% | 0.0% | 0.8% |
|---|
| Mission Marketing Group(The) ($TMMG) | | 0.8% | 6.1% | 1.2% | 5.3% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Jaywing ($JWNG) | 80.5% | 79.8% | 76.8% | 81.0% | 89.0% |
| Brainjuicer Group ($BJU) | 77.6% | 77.2% | 78.0% | 78.8% | 80.4% |
| Haynes Publishing Group ($HYNS) | 63.5% | 59.9% | 59.6% | 52.9% | 60.2% |
| Tangent Communications ($TNG) | 49.0% | 54.5% | 57.6% | 60.3% | 58.8% |
| Mood Media Corp ($MM.) | 61.6% | 58.6% | 54.4% | 53.9% | 51.6% |
| |
|---|
| Median (18 companies) | 44.2% | 42.0% | 42.3% | 43.5% | 41.2% |
|---|
| Mission Marketing Group(The) ($TMMG) | 35.7% | 40.6% | 41.6% | 43.8% | 46.2% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Dq Entertainment ($DQE) | 36.5% | 42.8% | 49.2% | 62.4% | 59.1% |
| Haynes Publishing Group ($HYNS) | 30.2% | 25.7% | 23.4% | 38.8% | 33.5% |
| Nahl Group ($NAH) | 36.5% | 36.6% | 39.6% | 28.8% | 29.5% |
| Quarto Group Inc ($QRT) | 19.9% | 20.0% | 25.9% | 27.8% | 28.4% |
| Avesco Group ($AVS) | 14.6% | 16.9% | 8.1% | 14.9% | 20.2% |
| |
|---|
| Median (18 companies) | 15.8% | 14.7% | 13.9% | 14.8% | 10.5% |
|---|
| Mission Marketing Group(The) ($TMMG) | 5.7% | 5.9% | 5.2% | 6.3% | 6.9% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Avesco Group ($AVS) | 14.3% | 22.7% | 13.2% | 18.6% | 14.4% |
| Mood Media Corp ($MM.) | 7.0% | 8.6% | 6.4% | 6.9% | 8.2% |
| Dq Entertainment ($DQE) | 18.8% | 6.8% | 2.0% | 0.0% | 4.6% |
| Naspers ($NPSN) | 5.0% | 4.7% | 4.9% | | 4.0% |
| Tangent Communications ($TNG) | 4.0% | 4.5% | 3.3% | 1.9% | 3.2% |
| |
|---|
| Median (18 companies) | 1.1% | 1.4% | 2.0% | 1.5% | 1.4% |
|---|
| Mission Marketing Group(The) ($TMMG) | 1.3% | 1.1% | 1.0% | 1.7% | 1.0% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Independent News & Media ($INM) | -3.0% | -43.9% | 136.2% | 29.6% | 65.1% |
| Brainjuicer Group ($BJU) | 47.0% | 24.3% | 49.0% | 60.0% | 58.5% |
| Nahl Group ($NAH) | | 37.1% | 42.3% | 31.5% | 26.0% |
| Avesco Group ($AVS) | 0.8% | 7.7% | -10.6% | 1.1% | 13.1% |
| Quarto Group Inc ($QRT) | 9.2% | 9.7% | 8.9% | 10.2% | 11.3% |
| |
|---|
| Median (18 companies) | 3.3% | 5.2% | 2.8% | 2.1% | 6.0% |
|---|
| Mission Marketing Group(The) ($TMMG) | 8.1% | 7.8% | 6.4% | 7.8% | 8.3% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Johnston Press ($JPR) | | 5.8x | | 11.4x | 15.6x |
| Mood Media Corp ($MM.) | 6.7x | 5.2x | 8.1x | 8.2x | 9.8x |
| Naspers ($NPSN) | 1.1x | 1.4x | 1.9x | | 6.2x |
| Grupo Clarin Sa ($GCLA) | 1.0x | 0.9x | 0.8x | 0.7x | 4.3x |
| Dq Entertainment ($DQE) | 0.2x | 1.1x | 1.5x | 1.5x | 2.8x |
| |
|---|
| Median (16 companies) | 0.2x | 0.9x | 0.7x | 1.1x | 0.9x |
|---|
| Mission Marketing Group(The) ($TMMG) | 2.3x | 1.8x | 1.7x | 1.2x | 1.2x |
